After more than 30 years of operation, Anglo will finally walk away from the Drayton South project despite numerous project planning revisions to accommodate concerns from the planning authority and local horse stud owners.

In reaching its conclusions, the PAC considered the potential impacts of the Drayton South open cut coal mine on the neighbouring horse studs, as required by the review terms of reference, it said.

“Notwithstanding the concessions made by Anglo American, the proposal is to undertake open cut mining to within 1 km of two of Australia’s most important thoroughbred breeding studs,” the PAC said. “The Commission found that at this proximity the mine poses risks to the reputation and, to a lesser extent, the operations of the Coolmore and Woodlands Studs.”

But the PAC ignored the detailed scientific assessments and peer-reviewed reports contained in the project’s Environmental Impact Statement (EIS), NSW government policy and the expert advice of 13 government agencies, according to French.

“This decision sends a terrible message about NSW as an investment destination. The expert advice of government agencies can be set aside on a whim,” he said.

“In this case, unfounded claims and threats from two horse studs have trumped the social and economic benefits of a considered, responsible project which has overwhelming community support.

“Anglo American has worked tirelessly on this project since 2009, spent over $70 million in studies and application fees, consulted widely and refined our proposal to accommodate legitimate concerns.”

This included reducing the project footprint by over 25%, ensuring all mining operations remain behind the second ridgeline nominated by the previous PAC in December 2013.

“To provide our neighbours with additional certainty, we offered the NSW government a binding agreement not to open cut mine in front of the designated second ridgeline,” French said.

“Only one side has been willing to compromise and we have worked within a planning system that has allowed all these concessions and scientific facts to be ignored, despite overwhelming public support for the project.”

French said the PAC decision is the worst possible outcome for our workers, for the Hunter Valley community and for NSW.

“Unemployment in the Hunter Valley is at 8% and to reject a project that would have continued to support this region for another 15 years, providing local people and their families with security, is incomprehensible,” he said.

“We are very mindful of the stress this challenging process placed on our workers, their families, our 140 suppliers and the community.

“Our immediate focus is on our people and full support will be given to them at this extremely difficult time.”

French confirmed that Anglo American will now review the PAC’s report in detail and carefully consider the closure plan for Drayton.

The PAC said it notes there are a significant number of viable open cut mining operations in the Hunter Valley that it has approved, and more still to come that are approvable.

“While the Commission recommends that the Drayton South open cut coal mine proposal does not proceed, it notes that Anglo American has sought limited additional mining within the existing Drayton mine pits,” it said.

“The Commission is satisfied that this mining at the existing Drayton mine site is acceptable and is approvable, subject to conditions.”